Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Lowell Confectionery is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 13,000 units, ±4 percent. The expected variable cost per unit is $7 and the expected fixed costs are $36,000. The fixed and variable cost estimates are considered accurate within a ±6 percent range. The sales price is estimated at $14 a unit, ±5 percent. The project requires an initial investment of $90,000 for equipment that will be depreciated using the straight-line method to zero over the project's life. The equipment can be sold for $39,000 at the end of the project. The project requires $11,200 in net working capital for the three years. The discount rate is 11 percent and tax rate is 34 percent. What is the operating cash flow under the optimistic case scenario?
A. $54,480.69
B. $56,612.78
C. $58,554.53
D. $60,321.98
E. $62,486.10
2. Assume a machine costs $186,000 and lasts four years before it is replaced. The operating cost is $12,000 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 10 percent? (Hint: the EAC should account for both initial investment and annual operating costs)
A. $70,677.57
B. $67,218.50
C. $62,113.94
D. $58,004.73
E. $54,669.77
What is China, and what is "Caogen" pr grassroots Culture in China;
Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $1.944 million.
Calculate the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest rate of 4.2 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal pla..
Reallocation of a retirement portfolio is important to maintain an appropriate level of risk over time. What general investment rule will help you reallocate yo
At an output level of 62,000 units, you calculate that the degree of operating leverage is 3.70. Suppose fixed costs are $280,000. What is the operating cash flow at 56,000 units? What is the new degree of operating leverage?
Linksus Tech is company that manufactures drill bits and screwdrivers. company should try to realize its current assets at the earliest to stay afloat.
What is the difference between a firm's cash cycle and its operating cycle?
Give an example of a significant negotiation. What elements of distributive bargaining or integrative negotiation were involved?
Even though no final conclusion is currently warranted, a number of research papers, including those of Fama and French, have argued that:
A proposed cost-saving device has an installed cost of $585,000. What level of pretax cost savings do we require for this project to be profitable?
What is the total present value of the property (mortgage and equity interests)?- Based on your answer to part (b), what is the implied overall capitalization rate?
What is the initial weighted average cost of capital? - If the firm has $27.5 million in retained earnings, at what size capital structure will thefirm run out of retained earnings?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd